CHICAGO–(BUSINESS WIRE)–July 26, 2000–Unitrin, Inc. (NASDAQ: UNIT) announced today that United Insurance Company of America, a subsidiary of Unitrin, completed the previously-announced sale of United’s subsidiary, The Pyramid Life Insurance Company, to Ceres Group, Inc. (NASDAQ: CERG) for $7.5 million worth of Ceres Group’s convertible voting preferred stock plus $60 million in cash, less an adjustment for a $25 million cash dividend paid by Pyramid immediately prior to closing. Unitrin expects that it will record a gain attributable to the sale of Pyramid of approximately $5 million in the third quarter of 2000.
Pyramid, based in Mission, Kansas, focuses on providing life and health insurance products primarily to the senior market, including Medicare supplement insurance.
Unitrin’s subsidiaries are engaged in property and casualty insurance, life and health insurance and consumer finance.
Certain statements made in this news release should be considered forward-looking information as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such forward-looking statements are not guarantees of future performance, and actual results may differ materially. Readers are directed to consider the risks and uncertainties in the Company’s business that may affect future performance and that are discussed in readily available documents, including the Company’s annual report and other documents filed by the Company with the Securities and Exchange Commission. No assurances can be given that the results contemplated in any forward-looking statements will be achieved. The Company assumes no obligation to release publicly any revisions to any forward-looking statements as a result of events or developments subsequent to the date of this news release.
CONTACT: Unitrin, Inc.
Scott Renwick, 312/661-4930